Wednesday, 18 May 2011

The article I have chosen is a useful source in highlighting the building rivalry between America and China. The issue is that with China's cheap labour and other factors mean that Chinese companies are quickly becoming a large threat to America's companies. This is why smaller business's such as the sock makers Wigwam Mills inc. will go to great lengths to keep their Chinese rivals from getting an advantage over them technologically, by not allowing even unused equipment be sold to Chinese companies. Most people seem to see the blame as landing on the American Government and multinational corporations for the problems and for not doing anything about it when they could. Now predictions suggest that America's economy will continue to decline, as China's continues to rise. The reasons for the larger corporations allowing this to happen could simply be down to the amount of money they make from their interests in China. "Only last week, Yum Brands Inc, the owner of the KFC, Pizza Hut and Taco Bell fast food restaurants, reported its operating profit was 75 percent greater in China than in the U.S. in the first quarter." This coupled with China's constant desire for expansion means that in the long term America's economy seems set to lose out.

No comments:

Post a Comment